UzPAK monopoly slows Internet penetration


Interfax Russian News Agency
October 7

The number of Internet users in Uzbekistan, where Internet access became available in 1996, is difficult to pinpoint. One estimate puts the number of users in 2001 at 150,000, while another estimates that 2% of the population, or roughly 500,000, have access. Residents of Tashkent are thought to make up 90-95% of the total.

According to estimates published in mid-2001, roughly 30% of Internet users go online at least once a week.

About half of users are students and the other half business people and specialists, of which about 30% are specialists in computers and communications and the remainder are low-and medium-level users.

The number of Internet-cafes and sites has risen fairly rapidly in recent years. There were a total of 21 Internet cafes in Uzbekistan last year.

Since 1999 Uzbek users have gained access to global information networks through UzPAK's national data network on the basis of special licenses issued by the Communications and IT Agency (formerly called the Uzbek Postal and Telecommunications Agency). Exceptions were made for diplomatic and international representations, as well as for specialized enterprises and institutions (banking systems, navigation systems and air traffic control). Thus all providers have to lease Internet channels from UzPAK.

UzPAK has 18 data transmission nodes, including 12 regional nodes. A subsidiary - UzNET - has nine data transmission nodes. International access capacity is 3.8 megabits per seconds in three directions. Total throughput on the UzPAK network is 10.6 megabits per second (over 3,000 gigabytes a month). All of Uzbekistan's regions have digital channels.

The head of the Uzbek Communications and IT Agency said recently that UzPAK could soon lose its monopoly on access to international computer network. Following changes to the 1999 government resolution on the creation of the national data network and regulation of access to global information networks, five to ten of the country's biggest operators that have data networks throughout Uzbekistan could be given independent access to global information networks, Rikhsi Isayev said. Nonetheless, according to the Uzbek media, a host of providers legally offer access on their own channels, at the same time upholding all the relevant information security measures.

There are currently about 100 ISPs in Uzbekistan, of which 72 have their own access to Internet channels. About 90% of the ISPs operate in Tashkent, but the number of firms offering their services in the regions is constantly growing.

Local ISPs offer a wide range of access options, including dialup, dedicated lines, e-mail and DNS, hosting and web design. ISDN and DSL are not currently available, and voice transmission service (VoIP) is not officially available.

A few companies, Sarkor Telecom in particular, use Radio Ethernet technology to provide wireless Internet access in Tashkent.

Aside from UzPAK, one of the largest providers is the Naytov company. Another firm, Uzbek-UAE joint venture EastLink Co. Ltd., had been one of the largest ISPs. However, the Uzbek communications agency recently shut down company operations. According to official sources, the venture lost its license due to a host of violations, including unsanctioned access to international computer networks that bypassed the national data transmission network.

UzPAK's charges for Internet access are relatively high. The market is structured so that the only competition occurs at the sub-provider level.

The current dialup connection cost is $1.71 - $1.76 an hour (roughly 1,300 soms) during the day and $0.6 an hour (450 soms) at night. Regional users pay considerably less, reflecting government efforts to expand usage in the regions.

The cost for a dedicated, 19,200 kbps line ranges from $248 to $1,316 a month, depending on the marketing plan and traffic. A 1 Mbps line costs $492 to $40,801 a month. Thus only major corporations, banks and foreign representations can afford to access the Internet on dedicated lines. Roughly 99 out of 100 clients utilize dialups.